[Kenya] Hashi Energy to sell its Tanzania retail business to Lake Oil Limited
Oil marketing company Hashi Energy has announced plans to offload its petrol stations in Tanzania to Lake Oil Limited after a nod from the Competition Authority of Kenya.
Hashi Energy, which is among the largest oil firms in the country with interests across different segments of the industry, The move is expected to increase Lake Oil’s presence in Kenya’s petroleum industry, where it is only active in the cooking gas segment and is yet to break even.
The transaction got approval from the Competition Authority of Kenya in January. “Competition Authority of Kenya has authorised the proposed acquisition of the retail petroleum business of Hashi Energy Ltd by Lake Oil Ltd,” said CAK Director-General Wang’ombe Kariuki in a gazette notice on Friday.
Hashi Energy currently enjoys a 6.5 percent market share in the country with operations in Rwanda, South Sudan, DRC and Uganda. Lake Oil, which is owned by Tanzanian billionaire Ally Edha, is using the buy to expand its operations across the region.
Other than the retail petroleum business, Hashi Energy also has interests in fuel storage, cooking gas as well as lubricants. Hashi Energy, which was founded in 1991, engages in the importation, distribution, and marketing of petroleum products in the East and Central African region.
Last year the oil firm signed a $135 million deal with Dubai based conglomerate SS Lootah to supply military personnel and non-governmental organizations in the Democratic Republic of Congo.
Hashi already has pre existing contracts with the United Nations Mission in the DRC for fuel and transport and storage.
Smaller oil marketers have been increasing their business operations across the region focusing on transportation and storage.